SRF (SRF) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 was challenging, with consolidated gross operating revenue at ₹3,464.1 crore, up 3.8% YoY, but profit after tax declined 29.8% to ₹252.2 crore due to headwinds in the chemicals business and margin contraction.

• EBITDA margin contracted to 18.6% from 21.9% YoY, and consolidated operating margin was 12.72%.

• Interim dividend of ₹3.60 per share (36%) was approved.

• Management remains confident of a revival in H2 FY2025, supported by new product launches and ramp-up of recently capitalized projects.

• Statutory auditors completed a limited review with no material misstatements identified.

Financial highlights

• Gross operating revenue: ₹3,464.1 crore in Q1 FY2025 (+3.8% YoY).

• Profit after tax: ₹252.2 crore (-29.8% YoY); PAT margin: 7.3%.

• EBITDA: ₹645.9 crore (-11.7% YoY); EBITDA margin: 18.6%.

• Basic and diluted EPS: ₹8.51 (vs ₹12.12 YoY).

• Interim dividend: ₹3.60 per share.

Outlook and guidance

• Management maintains 20% growth guidance for specialty chemicals, expecting H2 to offset H1 shortfalls.

• Gradual recovery in agrochemical demand and improved performance in H2 anticipated.

• Margin guidance for chemicals segment remains at 25%-26% annualized, with potential ±2% variation.

• CapEx for FY2025 projected at ₹1,300–1,900 crore, with no plans to defer projects.

• Commercial paper program remains highly rated; all due commercial papers repaid during the quarter.